Fiji’s leaders are grappling with the US government’s surprise decision to impose a 32% tariff on Fijian exports.
While Prime Minister Sitiveni Rabuka sees this as a signal to seek alternative markets, Minister for Economy and Deputy PM Biman Prasad called the move unfair. Trade Minister and Deputy PM Manoa Kamikamica, meanwhile, urged calm, saying talks with US officials could lead to a reduction in the tariff.
The United States is one of Fiji’s most important trade partners, accounting for 10% of total trade, 10% of tourism arrivals, and nearly 30% of remittance inflows. For years, Fiji has enjoyed a trade surplus with the US, exporting nearly FJ$500 million worth of goods annually. In 2024, Fiji’s exports to the US amounted to FJ$439.1 million, with key products including mineral water, kava, fish, sugar confectionery, and wood artifacts. However, imports from the US have risen significantly, increasing from FJ$190 million in 2022 to FJ$425 million in 2024. As a result, Fiji’s trade surplus has declined, dropping from FJ$293 million to just FJ$63 million.
This new 32% tariff could harm Fiji’s positive trade balance with the US. Key exports from Fiji could see big price increases, potentially making them too expensive for US consumers.
Rabuka admitted that the government was caught off guard by the sudden tariff hike.
“We did not see it coming. Now that it has come, we have to make some very, very tough decisions on how we trade, particularly who we trade with,” he said.
While reaffirming Fiji’s commitment to finding new markets, Rabuka warned that the “trade blockade” could force businesses to adapt quickly.
“We will have to look at new sources of imports and new markets for our exports. We are fortunate in the sense that we have a lot of friendly nations around the world that will trade with us.”
Deputy Prime Minister Biman Prasad was more vocal in his criticism, calling the tariff “disproportionate and unfair.”
He pointed out that most of Fiji’s imports from the US face significantly lower tariffs—with 72% of US imports taxed at 0%, another 25% at just 5%, and only a small fraction (less than 4%) subject to tariffs of 15% or 32%.
“The imposition of a 32% across-the-board tariff on Fijian exports is quite unfair,” Prasad said. “We are still trying to get more details on the exact rationale and application of the newly announced retaliatory tariff by the US and will work with our key stakeholders and US counterparts to get this resolved.”
Kamikamica said it was “too early to panic.”
He confirmed that the government would soon engage with the US ambassador to understand the reasons behind the high tariffs and explore the possibility of reducing them.
“It’s certainly too high right now, but rather than panic and make up all sorts of theories, allow the government to do what governments do, which is sit down, talk to our partners. The US is a friend of Fiji, and we’ll try and see how best we can move forward,” he said.
If the tariffs remain in place, Fiji could lose access to one of its most important export markets, jeopardising local businesses that rely on US sales.
One such entity, Fiji Water, has issued a statement acknowledging the tariff hike and assuring customers and stakeholders that the company is evaluating its potential impact.
“We remain committed to delivering Fiji Water to customers and maintaining strong trade relations,” the company said.
Trump announced the new tariffs today, calling it “Liberation Day” for the US economy, imposing duties on exports from 180 countries. He justified this by claiming other nations have higher tariffs on US goods. Fiji was not the only Pacific Island country subjected to the new tariffs. Others, including Papua New Guinea, French Polynesia, Samoa, Tonga, Solomon Islands, Cook Islands, Kiribati, and the Federated States of Micronesia, now face a 10% tariff on their exports to the US. Tariffs on Nauru and Vanuatu were increased to 30% and 23%, respectively.
